Which is a better measure of the rate of inflation: The Consumer price index (CPI) or the consumption component of the GNP deflator (PCE)? What accounts for the difference between them? (Explain your What is a better economic ...
A) Real GDP includes used goods and services B) Real GDP is adjusted for inflation C) Nominal GDP is adjusted for inflation D) There is no difference Why don't we use the PCE for aggregate price measurement rather than the CPI? The PCE seems to be a mixture of both the GDP deflator ...